research and development | The Contracting Education Academy

November 4, 2020 By cs

Pentagon R&D spending still lags behind an otherwise healthy Defense budget

The last few years of increases to the Defense budget have been, in general, good news for contractors. But it’s an uneven picture.

**Click on image above to see full report.**

In particular, Pentagon spending on research and development still hasn’t recovered from the cuts imposed by the 2011 Budget Control Act even as spending on products and services has risen significantly.

Those findings are part of the latest annual analysis of DoD contract spending data by the Center for Strategic and International Studies.

Overall, CSIS found contract spending has risen 35% since 2015, the low point of the Defense drawdown. That figure includes a 4% increase between 2018 and 2019.

But when it comes to R&D spending, the recovery has been much, much slower. In 2019, the department spent about $30 billion on R&D contracts. That’s well below what it spent in 2012, and even adjusting for inflation, about the same as pre-9/11 level spending.

Keep reading this article at: https://federalnewsnetwork.com/defense-main/2020/10/pentagon-rd-spending-still-lags-behind-an-otherwise-healthy-defense-budget/

May 5, 2020 By cs

Navy hoping to keep some acquisition momentum during COVID-19

The Navy says the way it is procuring goods and services during the COVID-19 outbreak may help quicken acquisitions later on during the crisis and keep programs on target for whenever it ends.

Speaking at the recent virtual Sea Air Space Conference, Navy acquisition chief James Geurts said the service is injecting money into the acquisition system to keep companies liquid with cash so they can stay afloat. The Navy is also speeding up contract awards.

“We are going to apply all the things we’ve learned during this to accelerate during the recovery phase because ships still need to come out on time,” Geurts said. “We’ve got to do the maintenance, we’ve got to continue to supply lethal capabilities to our sailors and marines and we can’t afford to lag the recovery.”

Geurts said he does not foresee the crisis affecting the Navy’s priorities after things return to normal. The Navy still wants at least 350 ships and it wants to field its Columbia-class submarine. The trick is keeping everything on schedule or close to it through the coronavirus outbreak.

“What’s important is that we don’t let the delay and disruption carry any further than it has to into the execution of our programs,” Geurts said. “There will be delay and disruption. The program teams have looked hard into where we were prior to this crisis so we can separate issues we had going in from issues caused by the crisis.”

Keep reading this article at: https://federalnewsnetwork.com/navy/2020/04/navy-hoping-to-keep-some-acquisition-momentum-during-covid-19/

The Contracting Education Academy at Georgia Tech has established a webpage where all contract-related developments related to the coronavirus (COVID-19) are summarized. Find the page at: https://contractingacademy.gatech.edu/coronavirus-information-for-contracting-officers-and-contractors/

May 1, 2020 By cs

DoD expects three month acquisition delays, billions in payouts to contractors

The Defense Department will suffer serious setbacks on developing weapons and pay companies billions of dollars in relief funds as a result of COVID-19.

The Pentagon expects a three-month delay across the board for major acquisition programs, putting a kink in systems like the Ford Class Aircraft Carrier, the Columbia Class Ballistics Missile Submarine and the Next Generation Operational Control System.

“Particularly, we see a slowdown in the shipyards,” Ellen Lord, defense undersecretary for acquisition and sustainment, told reporters Monday at the Pentagon. “Aviation is the most highly impacted sector that we have. Right now there isn’t any specific COVID penalty that we see for a specific program; however, we do anticipate a three-month slowdown in terms of execution.”

Lord said DoD is now starting to look at key procurement milestones that may be impacted by the delays.

Meanwhile, DoD is just beginning to take into account the amount of money in relief funds it will have to pay out to companies unable to do government work because of the coronavirus.

Keep reading this article at: https://federalnewsnetwork.com/defense-main/2020/04/dod-expects-three-month-acquisition-delays-billions-in-payouts-to-contractors/

April 29, 2020 By cs

Emergency acquisitions group at center of GSA’s coronavirus response

For the General Services Administration, the surge in contracting to respond to the coronavirus pandemic and now the fourth stimulus bill is business as usual.

Even with the activation of its emergency acquisitions group and new authorities, the Federal Acquisition Service is striking the balance between helping the Department of Health and Human Services, FEMA and other agencies, and pushing forward with key modernization initiatives.

Julie Dunne, the commissioner of the Federal Acquisition Service at GSA, said that contracting officers and other acquisition employees are meeting all the demands coming from multiple directions.

“I’ve heard from customers and other folks that GSA has not missed a beat in responding to the COVID-19 crisis. A lot of that is due to our telework capability and, in large part, the GSA IT shop has just been phenomenal,” Dunne said in an exclusive interview with Federal News Network. “Things we are seeing a lot of demand for, you won’t be surprised to hear, medical equipment, hand sanitizer and masks. We also are doing a lot in the IT world in terms of trying to support other agencies with telework capacity.”

Keep reading this article at: https://federalnewsnetwork.com/acquisition/2020/04/emergency-acquisitions-group-at-center-of-gsas-coronavirus-response/

April 21, 2020 By cs

OMB releases guidance to clarify coronavirus relief act’s contracting provisions

On Friday, April 17 the Trump administration released guidance to clarify how and when agencies can reimburse contractors as outlined in the recently enacted novel coronavirus economic relief legislation.

**Click on image above to download OMB Memorandum M-20-22.**

The Office of Management and Budget published a memo to supplement Section 3610 of the $2.2 trillion CARES Act, which allows federal agencies to use their funds to give contractors sick or paid leave during the pandemic if they are not able to access their worksites or telework. Although the administration advised agencies to “maximize telework” for contractors, that is not possible for many contractor jobs, including some involving sensitive or classified work. Trade associations that represent federal contractors previously welcomed this provision, but then asked for more clarification.

For applicable contractors, agencies can “modify the terms and conditions of a contract, or other agreement” to “reimburse at the minimum applicable contract billing rates” up to an “average of 40 hours per week [for] any paid leave (including sick leave) a contractor provides to keep its employees or subcontractors in a ready state,” according to the legislation. The new guidance says agencies can use their funds to reimburse contractors from the period of March 27 (when the CARE Act was signed) to September 30, 2020. Initially, the bill did not give a start date.

Additionally, the Office of Federal Procurement Policy within OMB “has developed [the] guidance to help agencies make rational business decisions that balance the need for contractor resiliency with the need for good stewardship,” Michael Wooten, OFPP administrator, told Government Executive on Friday. This includes being mindful of the challenges small businesses face and helping contractors secure the correct documentation they need for reimbursement.

Keep reading this article at: https://www.nextgov.com/cio-briefing/2020/04/trump-administration-releases-guidance-clarify-coronavirus-relief-acts-contracting-provisions/164729/

The last few years of increases to the Defense budget have been, in general, good news for contractors. But it’s an uneven picture.

The Navy says the way it is procuring goods and services during the COVID-19 outbreak may help quicken acquisitions later on during the crisis and keep programs on target for whenever it ends.

The Defense Department will suffer serious setbacks on developing weapons and pay companies billions of dollars in relief funds as a result of COVID-19.

For the General Services Administration, the surge in contracting to respond to the coronavirus pandemic and now the fourth stimulus bill is business as usual.

On Friday, April 17 the Trump administration released guidance to clarify how and when agencies can reimburse contractors as outlined in the recently enacted novel coronavirus economic relief legislation.

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